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Definitions I

Implementation to IT environment

Term

Definition

Implementation  the process of putting controls into effect by deployment or roll out of controls to enable their operation as designed.
Inclusive method (in the context of ASAE 3150) a method of dealing with the controls operating at a third party, which are integral to the system or control component which is subject to the assurance engagement, whereby the third party’s relevant control objectives and related controls are included in the scope of the assurance practitioner’s engagement.
Inclusive method (in the context of ASAE 3402)  method of dealing with the services provided by a subservice organisation, whereby the service organisation’s description of its system includes the nature of the services provided by a subservice organisation, and that subservice organisation’s relevant control objectives and related controls are included in the service organisation’s description of its system and in the scope of the service auditor’s engagement.
Indirect controls  controls which do not directly address the risks of a control objective not being achieved, but have an impact on the effectiveness of direct controls in detecting, preventing or correcting a failure to achieve a control objective on a timely basis. 
Information system relevant to financial reporting  a component of internal control that includes the financial reporting system, and consists of the procedures and records established to initiate, record, process and report entity transactions (as well as events and conditions) and to maintain accountability for the related assets, liabilities and equity.
Inherent risk  (see Risk of material misstatement
Initial audit engagement 

an engagement in which either:

(i) the general purpose water accounting report has been prepared and assured for the first time; 

(ii) the general purpose water accounting report for the prior period was not assured; or 

(iii) the general purpose water accounting report for the prior period was assured by a predecessor assurance practitioner. 

Initial audit engagement 

an engagement in which either:

(i) The financial report for the prior period was not audited; or

(ii) The financial report for the prior period was audited by a predecessor auditor.

Inspection  in relation to completed engagements, procedures designed to provide evidence of compliance by engagement teams with the firm’s quality control policies and procedures.
Inspection (In the context of ASA 220)  in relation to completed audit engagements, procedures designed to provide evidence of compliance by engagement teams with the firm’s quality control policies and procedures.
Inspection (as an audit procedure)  examining records or documents, whether internal or external, in paper form, electronic form, or other media, or a physical examination of an asset.
Intended users  the individual(s) or organisation(s), or group(s) thereof that the practitioner expects will use the assurance report. In some cases, there may be intended users other than those to whom the assurance report is addressed.
Intended users (in the context of ASAE 3500)  parliament, responsible party, individual(s) or organisation(s), or group(s) thereof that the assurance practitioner expects will use the assurance report. In some cases, there may be intended users other than those to whom the assurance report is addressed, such as the general public if the assurance report is made publicly available.
Intended users (in the context of ASRS 4400)  the individual(s) or organisation(s), or class (es) thereof for whom the assurance practitioner prepares the report of factual findings.
Interim financial information or statements  financial information (which may be less than a complete set of financial statements as defined above) issued at interim dates (usually half yearly or quarterly) in respect of a financial period.
Interim financial report  a financial report that is prepared in accordance with an applicable financial reporting framework for a period that is shorter than the entity’s financial year.
Internal audit function  a function of an entity that performs assurance and consulting activities designed to evaluate and improve the effectiveness of the entity’s governance, risk management and internal control processes.
Internal auditors  those individuals who perform the activities of the internal audit function. Internal auditors may belong to an internal audit department or equivalent function, out sourcing entity or co sourced from both internal and out sourced resources. 
Internal auditors (in the context of ASAE 3402)  those individuals who perform the activities of the internal audit function. Internal auditors may belong to an internal audit department or equivalent function.
Internal control  the process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. The term “controls” refers to any aspects of one or more of the components of internal control.
International Financial Reporting Standards (IFRSs)  the International Financial Reporting Standards issued by the International Accounting Standards Board.
International Public Sector Accounting Standards (IPSASs) the International Public Sector Accounting Standards issued by the International Public Sector Accounting Standards Board.
Investigate  to enquire into matters arising from other procedures to resolve them.
IT environment  the policies and procedures that the entity implements and the IT infrastructure (hardware, operating systems, etc.) and application software that it uses to support business operations and achieve business strategies.